Central 1 Credit Union

Central 1 Credit Union

November 20, 2014 06:00 ET

Ontario Economy to Gain Strength as U.S. Expands, Creating Jobs and Higher Corporate Profits, Central 1 Credit Union Forecasts

TORONTO, ONTARIO--(Marketwired - Nov. 20, 2014) - Ontario's economy will continue to rebound over the next five years as the U.S. market grows and manufacturing and commodity exports rise, says the latest five-year forecast by Central 1 Credit Union.

"Higher U.S. economic growth and further depreciation of the loonie will spur the Ontario economy," says Helmut Pastrick, Chief Economist at Central 1, which is the trade association for most Ontario credit unions.

"Growth in 2015 will be moderately higher at 2.2 per cent, up from an expected 1.6 per cent in 2014. The impact from improving external economic conditions will increase each year in the forecast period, pushing growth to 2.6 per cent in 2017 and 2.9 per cent in 2019."

Labour market conditions will gradually improve with moderate employment gains and slow labour force growth. The 2015 unemployment rate is forecast at 6.9 per cent compared to 7.3 per cent in 2014. It is expected to decline each year until 2019, when it is forecast at 5.2 per cent.

Key findings in the forecast include:

  • Ontario's economy is gaining strength due to stronger U.S. growth and the lower loonie.
  • The 2015 Pan Am Games, hosted by Toronto, will boost growth.
  • Unemployment will continue to decline, dropping to 5.2 per cent in 2019.
  • Corporate profits are poised to rise 10.9 per cent in 2015, compared to 2.8 per cent in 2014, following no increases in 2012 or 2013.
  • The housing marketing will remain stable and post modest gains.

"Ontario's economy has consistently underperformed the rest of Canada since 2003," Pastrick says. "The shift from a leader in the 1990s to an underperformer can be traced to weaker international exports and the shrinking manufacturing industry."

Toward the end of the next five years, Ontario will no longer be an underperforming province, the report forecasts.

Read the Ontario Economic Outlook.

About Central 1

Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Owned primarily by its member credit unions, 43 in B.C. and 86 in Ontario, Central 1 represents a consumer-oriented, full-service retail financial system that serves 3.3 million members and collectively holds $97 billion in assets.

With offices in Vancouver, Mississauga and Toronto, Central 1 provides liquidity management, direct banking and payment service solutions as well as a wide range of trade services. For more information, visit www.central1.com.

Contact Information